Good morning. My name is Rob and I will be your conference operator today. At this time I'd like to welcome everyone to the Unum Group Fourth Quarter 2023 Earnings Results and 2024 Outlook Conference Call. All line have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] Thank you, Matt Royal, Senior Vice President of Investor Relations. You may begin your conference.

Wonderful. Thank you, Rob. And good morning to everyone. Welcome to Unum Group's fourth quarter 2023 earnings call. Today, we will be discussing full-year 2023 results along with highlights from the fourth quarter. We will also use the time to discuss our outlook for 2024. Please note that today's call may include forward-looking statements. Actual results, which are subject to risk and uncertainties, may differ materially, and we are not obligated to update any of these statements. Please refer to our earnings release and our periodic filings with the SEC for a description of factors that could cause actual results to differ from expected results. Also, today's presentation may include non-GAAP financial measures, and a reconciliation to the most directly comparable GAAP measures can be found in our earnings release and the investor relations section of our website. Also, please note, references to Unum International sales and premium are presented in local currency and core operations sales and premium results are presented on a constant currency basis. Further, discussion of adjusted operating 2023 EPS growth of 23% or $7.66, compares to 2022 historically reported EPS of $6.21. Yesterday afternoon, Unum released our earnings press release, financial supplement, and webcast presentation. All of those materials may also be found on the Investors section of our website. Participating in this morning's call are Unum’s President and CEO, Rick McKenney, and Chief Financial Officer Steve Zabel. Following the remarks from Rick and Steve, additional members of management will participate in Q&A, including Mark Till, who heads our Unum International Business; Tim Arnold, who heads our Colonial Life and Voluntary Benefits lines, and Chris Pyne for Group Benefits. Now I'll turn the call over to Rick.

Great, thank you Matt, and good morning, everyone. It's a pleasure to be here with you all today, sharing the journey of Unum throughout 2023 and where we're headed in 2024. This is the first time we've shared our outlook in conjunction with our year-end results, and I think it works well given the consistency of our actions and performance across the company. As we reflect on our progress and look ahead, I am proud to affirm our unwavering commitment to our purpose of helping the working world thrive throughout life's moments. Steadfast focus and commitment to this purpose is delivering value to customers, employees, communities, and of course to shareholders. 2023 was a year of exceptional results across the board, with the highlight being our decades-long leadership in disability insurance shining through, and core business growth momentum building stronger with significant strides in accelerating our industry-leading digital capabilities. The capabilities we are bringing to market such as HR Connect, Total Leave, Gather, and Help at Hand are becoming connection points with employers and employees to bring greater customer satisfaction to the benefits experience. These advancements have been influential in attracting and retaining customers, setting us apart in a competitive landscape, and ultimately driving strong top line results, including sales of over 13% for the full-year of 2023, and premium growth of over 5%. This top line growth has returned steadily throughout the year, and has us on the trajectory that we look for in our business model. As the topline has returned in 2023 our discipline with how we run the business has now wavered. Our pricing in underwriting has remained consistent to continue to deliver growth and high returns on equity. Overall, we grew EPS 23%, with most of our product line delivering on our expectations throughout the…

Great, thanks, Rick, and good morning to everyone. As Rick mentioned, we were extremely pleased with the strong finish to the year across the board. This caps two years of continued momentum building in our core operating segments. This is evident in both our sales and operating results. For the full-year sales, we're up 15.1% in Unum U.S., 26.7% in Unum International, and 6.2% in Colonial Life, where we saw accelerating growth each quarter, including 11.5% growth in the fourth quarter, compared to the same period a year ago. Premium for our core operations increased 6.1% in the quarter, compared to a year ago and finished up 5.2% for the full-year, exceeding the expectation laid out last February and more consistent with our long-term expectation. Disability results were favorable across the company as well, highlighted by a group disability benefit ratio of 59.1% for the full-year and 59.5% in the quarter. We do expect benefit ratios in the low-60s to continue in the near to mid-term as we continue to see support for these levels in both our operations and in the market. These same trends are also supporting strong performance in our individual disability and U.K. Group income protection product lines. We ended the year with after-tax adjusted operating income at $1.5 billion and after-tax adjusted operating EPS of $7.66, which represents growth of 23.3% over historically reported full-year 2022. The fourth quarter's results of reported after-tax adjusted operating EPS of $1.79 was impacted by two items that I would like to mention. First, the effective tax rate in the fourth quarter was elevated at 22.8%. We expect the long-term rate to be between 21.5% to 22% and vary some from period-to-period due to foreign tax dynamics. The variance in the fourth quarter lowered EPS by approximately $0.03. Further,…

Great thank you Steve. As you can see and based on Steve's and my comments, 2024 is shaping up to be a great year for Unum. The teams are very focused on what we want to achieve this year and continued momentum in our core business and the inflection point we're seeing with capital now that our LTC block is funded as Steve articulated, really puts us in a very good spot. So there's plenty of topics to discuss today. So with that, our team is here to field questions and I'll turn it back to you, Rob.

[Operator Instructions] Your first question comes from line of Joel Hurwitz from Dowling & Partners. Your line is open.

Hey, good morning. First on the core businesses, if I compare the ‘24 earnings I looked relative to what you guys guided a year ago. I estimate that core business earnings expectations are over $150 million better than what would have been implied a year ago. And I guess do you see this level of core business earnings as sustainable longer term or would you expect to have to give back some of the favorable risk results over time?

Yes, this is Steve. I can take that question and I'll just maybe get into math a little bit how we're thinking about expectations going into ‘24. I think the key to think about with our core businesses, we do believe that we're going to be able to maintain the margins in our group disability business through the next year. And specifically, we believe that the benefit ratio for group disability will remain in that low-60% level. I would also note that we do anticipate an increase in Colonial Life earnings. I did mention we had several one-time items that did dampen the earnings of Colonial Life in 2023, and we think in 2024 that earnings will come through on a more kind of core basis. And then maybe we can hit a little bit on just the commercial environment and competitive environment and just the level of pricing in the group benefits line.

Yes. Thanks, Steve and thanks for the question Joel. This is Chris. You know, we're really excited about where we stand. I'd like to start with capabilities. When we're talking to new customers, we're really there to help solve problems. We see many more prospects in the market, who are looking to solve big problems that we address through some of the things Rick mentioned with Total Leave, HR Connect and MyUnum. That changes the game versus a more traditional price check type environment. So from a new business perspective, we are riding strong levels of business. We expect that to continue and we're hitting price point. That's a great day. From a renewal perspective, you know, business is favorable and we look at it very much on a case-by-case basis. We are -- our history of strong risk discipline from an underwriting perspective serves us really well. Again, these customers value what we bring. We're able to show up in these discussions with an opportunity to talk about long-term price stability, whether it be, you know, modest rate increase, rate pass, or rate reduction. And our persistency results through the close of ‘23 were quite strong as we go on to ‘24.

Yes, I think, Joel, you hit it. There was a step up in 2023 from an earnings perspective, but you can see from our outlook in 2024, we're looking to grow off it. So 7% to 9% on top of a very strong year, you know, all those indicators that we talked about, and as Chris articulated, in particular to our group disability, but even with our Colonial Life business are all intact. And that leads us to our good outlook coming off of an incredibly strong year.

Okay, helpful. And then in terms of long-term care, I guess what gives you guys confidence that the experience you've been seeing is more of a catch-up versus a longer-term shift in trends? And then in terms of the outlook, what's embedded in 2024 guidance for Closed Block earnings?

Yes, this is Steve I can take that one. So related to incidents, I just kind of take people back a little bit on long-term care and where we've been. At the beginning of 2023, we saw very elevated incidents through the first six months. We saw that start to abate a little bit in the third quarter, albeit at still elevated levels. Going into the fourth quarter, I would say those incidence levels were pretty consistent with what we saw in the third quarter. But what we also saw during the pandemic were fairly low levels of incidence, and we could just see when we're looking at, you know, just kind of our inventory trend lines that we were a bit below, the trend lines that we would ultimately expect. And so as we approach back to those, that gives us some confidence that this was just kind of pent up demand. The other thing that we've seen a lot of over the last six months, I would say, and maybe even a little bit before that, with a higher level of resubmission of claims, and those would be claims that had previously been submitted, but either denied or closed or recovered for other reasons. And we've seen the level of those come back in, which might indicate claims that originally had been pulled back, but now have been submitted. And so, obviously we have to continue to monitor this. We do believe that the level of incidents for a while in ‘24 will probably continue at an elevated level, but we would look to monitor that then as we get into the back half of the year. And I would say within our outlook, we still do have a level of elevated incidents built into that outlook.

Okay, thank you.

Thanks, Joel.

Thanks, Joel.

[Operator Instructions] Your next question comes from a line of Alex Scott from Goldman Sachs. Your line is open.

Hi, good morning. First question I had is just on the excess capital position. At the Holdco, it got a lot stronger with a big dividend that seems in 4Q and you're projecting it to get better in 2024. So just thought maybe you could give us a high level, what are the priorities there? You've outlined share repurchases, and we know where comp dividends are, it looks like you're at $0.5 billion after that, the sort of not earmarked. So what are the priorities for using that?

Sure. Thanks, Alex. Just to take you back, everyone back, we mentioned a couple of times, but the capital generation this year was very, very strong. We see it continuing as we go forward. And we ended the year in a very good capital position as we've been building that throughout 2023. So first of all, I'll start there. Second is last year, a priority was putting more money behind long-term care and funding that level of funding up the PDR, and so that was accomplished. And I think that leaves us in a good spot as we've talked about. No more money going towards long-term care. And so then we think about the deployment opportunities we have in 2024, I'd start out first with putting it right back in our core businesses, investing in the digital capabilities we talked about. From an organic perspective, that's contemplated in our earnings as we talk about that, as we fund internal initiatives. And we'd like to look at M&A to how do we continue to accelerate that growth rate. Capabilities, things that surround our business, whether it's distribution, product, internal capabilities, we'll continue to look at. And when you do all of those different things, we then look at our -- how we'll deploy it back to our shareholders. Steve mentioned the dividend expectation even ticked up a little bit, that 10% to 15% range this year. And share repurchase, which is double where it was a year ago at $500 million. Doing all of that, we still have building capital levels, and we'll have to contemplate that over time, what we want to do with that. These are different trend lines that we're on from a generation, as well as from a deployment perspective. And so we'll be thoughtful in 2024 about how we do that. I think Steve articulated on one of his slides and mentioned, we're going to be dynamic with share repurchase. So it's not something we're putting out there today. But clearly, as you said, we're in a much higher level of capital that we've seen over time. And we have lots of potential uses for it. Nothing particular that we have today it will build, but we'd love to use some of that capital to deploy to grow our business faster, and then if we don't see that opportunity to turn it back to our shareholders.

Got it. Very helpful. And then I wanted to go back to some of the comments you're making on, you know, being fully funded on LTC. I guess, when I look at the one slide that's got the bullet on reserves peaking in 10-years, and there's -- I know you talked in the past about the natural sort of higher required capital is that reserve level builds. If we think through where interest rates are right now and sort of the $1 billion and change of PDR balance coming down, is that enough to be fully funded just for like some finite period of time? Or when you were looking at that reserve build and then getting over the peak of it, is it really that your base case is that you're actually projecting at this point that you never have to fund it ever again? I mean, I just want to understand what you mean by being fully funded and if that's changed at all?

Yes. This is Steve. So I would separate. When we say fully funded and those statements, that's specific to -- in 2023, we fully recognize the PDR and we downstream capital, okay? If I look forward, though, and we look at current interest rates and we look at our current best estimate assumptions that we do believe that, that will be kind of self-contained funding for all the required capital that would be needed for the build of those reserves over the next 10 years. And then once you get beyond that, those reserves will start to release, which we'll start to release some of the required capital behind that as well. So right now, with our current projections, we do take a longer-term view that we're not going to need to contribute capital to fund long-term care.

Got it. Thanks.

Your next question comes from the line of Suneet Kamath from Jefferies. Your line is open.

Thanks. Good morning. Just starting with long-term care, Rick, you had mentioned this, I think, in your opening comments about pursuing risk transfer. Obviously, the environment is dynamic. We saw a transaction late last year. Other companies have talked about bid-ask coming in. So can you just give us a sense maybe where you are in that process, what the conversations are like? Has there been a change, given some of the actions that you took last year as well as the rate environment?

Sure. Thanks, Suneet. Just a couple of comments. One, you mentioned the transaction that happened last year. It was good to see. It was a positive development. I think after many years, where we've been talking about it, but you haven't seen anything in the market. So I just articulate a positive development. If you look at the transaction that was done, it's very consistent with how we've been talking about it, in terms of parsing out certain risks within our block, taking on different things, finding the right counterparty. All of those are things that we've been talking about what a transaction might look like. For us, our message is very consistent around that. So we have the ability to work with counterparties, to do that, to parse out different things, the bid-ask spread that we look at. And when that closes, we'll be looking at a transaction. We're not there in terms of what we've seen out there, but we're going to stay very active in the markets. And I think that we'll look forward to more buyers meeting sellers, but I don't think there's a change in our tone overall from a market perspective, but we're very happy to see that positive development happen in the market. So hopefully, that answer -- I think our messaging will be very consistent. The only thing that's different is something has happened in the market, and that's a good thing.

Got it. That makes sense. And then I guess, as we think about your capital plans for 2024 and in particular, that slide that looked at where you expect to be at year-end '24, I think all measures are higher than where you ended 2023. And so I guess the question is, is there a thought there around maybe holding back on some of the capital deployment in anticipation of some sort of transaction with respect to LTC? Is that part of the capital philosophy at the company?

It's really not. When we think of a potential transaction out there, we think we -- before this year, we had plenty of capital to do it. Steve had on his slide, we have a lot of debt capacity as well. So I really would take that out of it. We're not earmarking any of those excess funds we're talking about for any particular use. We'd love to see it in terms of the good M&A transaction. If something could happen in LTC, that would be good as well, but we're not holding back any funds waiting for a transaction to happen. We've got the flexibility, the capacity to do something, even as we stood at -- even as we stand today or as we project out over the course of the year.

Got it. Okay, thanks.

Your next question comes from the line of Jimmy Bhullar from JPMorgan. Your line is open.

Hey, good morning. So first had a question on competition in the disability market. If you look at margins, for you guys for most of your peers, they've been very strong. So just wondering why you haven't seen competition pick up or -- because I would have normally thought that with margins being as strong as they are, you would have seen prices come down a lot on one-one renewals, and it doesn't seem like they've moved down as much?

Chris?

Yes. Thanks for the question, Jimmy. Competition is always out there, that's for sure. But I would take you back to some of the things that we do, both from a capabilities perspective and from a claims management perspective. So again, our customers are buying a broader experience from us. I'll give you an example from MyUnum. Smaller customers who are looking for a completely integrated set of products that work really well from an administration standpoint and an enrollment standpoint. We've got the right contracts and cover so they get really high-quality insurance. And of course, that ultimately ends up in a wonderful claim experience. Going upmarket. HR Connect is a great example, where somebody is buying our products because of deep integration with leading HCM platforms like ADP's Workforce Now, Workday and UKG. And then again, if somebody buys the total leave package from us, they're looking for us to solve a very significant challenge with claims administration and compliance on leave management. With that comes of great insurance products. We've got a phenomenal claim team behind those products that do a wonderful job to make sure we pay exactly what we should pay and do it with great care and compassion. We do a great job of getting people back to work, and incidence has been favorable in the current environment, which we expect to continue. So you put that whole thing together, and we, again, I go back to where I started the conversation around strong disciplined underwriting. We've got a very kind of logical way to kind of describe fair price in that environment, and it's generating strong returns. And again, this has been for a period of time, and we expect it to continue.

Okay. And then just following up on -- you've made a few comments on M&A. And in the past, you've done a few smaller type deals. What is it that you're looking for ideally in terms of M&A? And would you be interested in sort of larger deals as well? Or should we assume a consistent approach to what you've done in the past?

I think the assumption would be a consistent approach. I think we're looking at not necessarily to go far afield, but to build our positions that we have. We have opportunities to do that. There are some areas we'd like to continue to build out across the franchise, across the world on that front. But when you think about other bigger transactions that do basically what we're doing today, we're going to be very, very selective, because we think we have the opportunity to grow it organically. So hope that gives you a sense. We were very happy with the transaction we've done. Although it's been a couple of years since we've done one, but we're going to be out there in the market continuing to look at what makes sense for us and most importantly, what's on strategy.

Okay, thanks.

Your next question comes from the line of Tom Gallagher from Evercore ISI. Your line is open.

Good morning. Just a few on long-term care. First is the elevated claim frequency versus your expectation? I'm solving for around 3% to 4% elevated. Does that sound about right to you? Or would you adjust that figure?

Yes. I probably don't want to specifically attribute the impact of claims incidents to the loss ratio. I think what I'd take you back to is just the net premium ratio and really thinking about if our actual performance is equal to the expectations built into our reserve, we should have a loss ratio of around 95%. And clearly, claims incidence has been elevated over the last several quarters, and so you've seen that NPR creep up just a little bit. And historically, you've seen higher-than-expected loss ratios. But that's probably the best way to think about it, Tom. In my comments, I did say we expect that elevation to continue some into 2024 and then dissipate over time.

But just directionally, I just want to make sure we're not talking about elevated incidents of double digits that with what you're seeing on the claims front, it's less than that. Is that -- even not looking for a specific number, just want to know directionally, are we talking about a big change in incidence or not?

Yes. Again, going into next year, we don't anticipate it getting worse than what we've seen in the back half of the year. And the loss ratio that we reported during those periods of time were around 105, 107. So I wouldn't see it going beyond that. But we just have to see how it plays out in the future.

Got you. And then second question, just the higher level of resubmission of claims that you were highlighting. Can you talk about, maybe unpack that a little bit? What's happening exactly? Were there lower acceptance rates before? How does that process work? And this sounds like there's a little bit of an inventory on the resubmission of claims, but if you can expand on that?

Yes. I mean resubmission is going to happen in a lot of ways. We start to track the claim pretty early on in the submission process. And so a lot of things going to happen. People can withdraw the claim. We can close the claim before it starts to pay. It may go to pay status, but it recovers very quickly. And that happens for a variety of reasons. Some of it around us accepting the claim and approving the claim. Some of it may be policyholder driven, that they've changed their mind around the claims submission and come off a claim. What I would just say, though, is we have seen a higher level of that than we've historically seen and it's something that we track, but it does create a little bit of pressure in kind of our expected incidence counts over time.

Got you. And then just one final one on risk transfer. I guess, one prominent feature of the MSC deal was their willingness to package some other risks along with LTC. And again this is just my opinion, but I believe that expanded the number of reinsurers willing to get involved. Is that -- would you guys -- I think the way you've talked about it in the past was LTC-only deal, not really packaging other risks. But if it allowed you to get something done, do you have the ability? And would you consider packaging other risks along with LTC?

Yes. Tom, the way I'd answer that is we've talked about how buyers can meet sellers in the process. And as we look at it, we talk to counterparties and -- we've talked about it within the LTC block of how we would parse risks, think about asset management, aspects of that, think about liabilities. But certainly, we would be open to other things that buyers would be looking for around the franchise. So I wouldn't take that off the table, and we would have that opportunity.

Great. Thanks, Rick.

Your next question comes from the line of Ryan Krueger from KBW. Your line is open.

Hey, thanks. Good morning. First, just a quick follow-up. Is your expectation still that in 2024, you will earn within the $130 million to $160 million range in the Closed Block, maybe towards the lower end? Or -- can you give any more color on kind of what you assumed for the earnings, given the higher incidents that you expect near-term?

Yes. It's in that range. And the two variables would be claims incidents and really the alternative asset portfolio. We would assume that we get back to kind of longer-term yields on that portfolio. And as you know, that tends to be volatile quarter-to-quarter.

Got it. And if I could ask, I guess, one more on risk transfer. You do have the first New York entity, which has, I think, a lot of older age long-term care in it and pretty conservative reserves due to the requirements in New York. Is selling the entire legal entity another option beyond separate from reinsurance? Or are there other liabilities in that entity, that would prevent that from occurring?

Yes. I appreciate the question, Ryan. I'm not sure I want to get into too much detail. I think I'd just go back to my earlier comments, which is we look at the entirety of our long-term care exposure and think about how we can parse those different risks in different ways. I wouldn't want to get into a legal entity or even duration-specific things until we get closer to getting something done.

Okay. And then if I could maybe just sneak one last one. You talked broadly about the good environment for renewals. But could you give us any more color on just the pricing dynamic in Unum U.S., where prices -- like when you look at prices as a whole, were they relatively flat? Or did you bring them down some for disability or can you give us any more sense of what happened there?

Yes. Thanks, Ryan. It's Chris. We're constantly looking at different ways to kind of make sure we can grow in the most logical and profitable way possible. So it's really -- consider it just our active underwriting and pricing approach. We're very thoughtful. We have tremendous data. We use it all the time to be as sharp as we possibly can. We recognize trends are early, and that goes into, what I would consider business as usual, in terms of thinking about price at the case level, thinking about price in different segments where we see opportunity. So it is a competitive world. We have growth expectations that we're really excited about. We're certain we can deliver, and we'll continue to kind of take that active approach to the process.

Great. Thank you.

Your next question comes from the line of Wilma Burdis from Raymond James. Your line is open.

Good morning, Wilma.

Wilma, your line is open.

Good morning. You guys touched on it, but I would like to confirm if $1.4 billion to $1.6 billion of annual capital generation is a good run rate beyond '24? Is there some risk to that level if disability results normalize?

Yes. This is Steve, I can take that. I think that's a good planning assumption. Obviously, over time, we like the franchise to continue to grow at some grade that would be reflected. But I think that's a good run rate. And that would anticipate for 2024, the group disability loss ratio to stay in the low-60s. Our planning assumptions for capital generation and for our GAAP earnings expectations would be consistent.

Okay. Thank you. And then you have provided a new data point that LTC reserves are peaking in 10-years. That's sooner than I expected, especially on the group side. And it's a very good data point, because it implies that we're a lot closer to knowing how reserves will develop than I initially anticipated. Could you talk about, is this an average across the block? And if so, is there a different peak reserving time line for the individual versus group blocks?

Yes. So it would be an aggregate view of the total reserve. And just due to the age of the blocks, you would logically think that the individual will peak sooner than the group. I would say though the magnitude of the reserves that we carry on those two are a bit different, just because of the relative size of the relative rich and some benefits for our group business versus our individual business. So there's a lot of weighted averaging going on. But in aggregate, that's when it's going to be.

Thank you.

Thanks, Wilma.

Your next question comes from the line of Josh Shanker from Bank of America. Your line is open.

Yes, hi there. Sorry, one last transaction question. Apologies -- but you mentioned that in a number of years and things lined up properly, the interest rate situation is changing. Do you think there were unique circumstances on the ground that allowed a transaction to come together? Or are you currently seeing appetite that people are discussing wanting to do transactions the matter of finding the right one for you?

Yes. So I wouldn't want to speculate. I don't know what was going on, particularly on the ground with that transaction. I can look at it just as you can from a far and say that it's a positive development for the industry and for people that are looking to do something on that front. And I would just say we have had very consistent dialogue, very consistent outreach expectations parsing. So I don't think our world has necessarily changed as a result of that. But I think it's good for the world to see that these transactions can happen, and we'll continue to pursue such a transaction.

Okay, my other questions were asked. Thank you very much.

Thanks, Josh.

Your next question comes from the line of Mark Hughes from Truist. Your line is open.

Yes, thank you. Just one quick one. Anything nonrecurring in the recoveries? Recoveries have been very strong. We've heard from other companies that social security administration has been kind of stingy in their payouts. I know that's only a part of your recovery story. But is that something that should be sustainable?

Yes. I can answer that, Mark. So I would say that if you go back really several years, we have seen a continued improvement in the performance of recoveries within our group disability block. And so what we're seeing in the more recent history is just a continuation of that. And so I would not view the performance in the fourth quarter as being in any way unique or non-sustainable. And that's why we feel pretty comfortable giving guidance going into next year, that we'll be able to maintain those levels of benefit ratios, that not only to the market dynamics that Chris spoke to around pricing, but also just around our operational excellence and being able to maintain that level of performance.

And I'll maybe throw in one more, the Colonial sales are pretty strong this quarter, up 12%. You talked about high single digits. Was there an unusual boost or easy comp this quarter?

Yes. Thank you for the question. This is Tim. I would say that comps are not that easy, although they weren't extremely challenging either. But we feel good about where we landed the quarter end. Frankly, the year, we think the market is growing in the 4% to 6% range, and we came out at the top end of that range. We really like our strategy. We think we have the tools and technology to help our agents, brokers and clients achieve their goals. We grew our sales leadership team by 8% last year. And on the third quarter call, I mentioned that we are strengthening our offering in the large case commercial market. And while we still have a little bit of work to do there, we're really pleased that we saw a fourth quarter growth rate in the 500-plus life market of 36%. So really just focused on consistency of execution and broad-based adoption of those differentiating tools and technology that we have in our portfolio. As we look forward, a couple of the leading indicators we watch are new recruits and sales productivity from those new agents in the 2023 in total. Recruiting was up 23% and new agent sales were up 18%. Since all you've been sneaking in one last question. I'll answer a question you didn't ask. But we saw really strong growth on the Unum BB side of 10.2% last year. We're excited about the opportunities we have to cross-sell into the group block and to take advantage of those technology solutions that Chris mentioned earlier and grow that book as well.

Appreciate it. Thank you.

Your next question comes from the line of Mike Ward from Citi. Your line is open.

Thanks guys. Good morning. Just quickly, I was wondering if you had any kind of similar commentary on the benefit ratio guidance quantification type range for AD&D or supplemental and voluntary like you gave for group disability?

Yes, this is Steve. I can cover that. Maybe I'll go across all the businesses. We've talked about group disability quite a bit. I might just touch on Group Life. Group Life had a very good quarter in the fourth quarter, which we do not believe is sustainable. So I think a good planning assumption there would be more in that 73% to 75% range. And then for really all of our other lines, including the ones that you mentioned, I would just go back to the guidance that we gave last year, and where those businesses have historically performed. I think that's probably a pretty good indicator of our view of how they're going to perform going forward.

Okay. Thanks, Steve. And then maybe for capital return for '24. It sounds like there is some excess there or capital left over. Just curious, like, let's say, you don't come across any acquisition opportunities or bolt-ons, what have you? Should we think about potential upside to that? Or should we think of that as like a realistic like straight-line guidance for the year?

Yes. I think, Mike, the way I'd look at it is kind of how Steve, it will be dynamic. So we don't just set a plan and set it and forget it. We actually will be back at it all the time. So building up that excess throughout the course of the year, we're going to be making decisions constantly about what we want to do with that. And as we get closer to those decisions, we'll certainly give the market some heads up around that.

Thanks, Rick.

Your next question comes from the line of Tom Gallagher from Evercore ISI. Your line is open.

Hey, thanks for the follow-up. Just a question on sales. Long-term disability sales were down 12%. Group Life and AD&D were up 61%. Can you comment on the mix? Should we take that to mean more price competition and long-term disability and less on group life? Is that why there was a shift or something else happening there?

Yes. Thanks for the question, Tom, it's Chris. Actually, it's a good call. We saw some great opportunity in group life package with -- a lot of it was packaged with current customers. So I always like to add life insurance in that environment. We actually did have more strength in the disability sales line than it would appear. Full-year sales were up 14% and in the quarter for pure disability, pure LTD up high single digit, 8% or so. What you don't see at the surface is we did have soft stop-loss sales in the quarter, and that had an impact on the overall disability sales line as we report them together. But in general, any given quarter, it can be a little bit volatile, but we did see very good sales growth in Group LTD and Group STD for both the quarter and the full-year. Extra good in group life this quarter and the mix will move around over time.

And so that -- and sorry, that the stop loss, is that medical stop loss? Or is that disability stop loss? What type of product is that?

Medical stop loss.

Yes, Tom, it's a line that we launched several years ago. Just to clear, this is the line we launched several years ago opportunistically, and so you'll see that be a little bit more volatile, but I think it's a good call out within the results. LTD was actually quite strong from a sales perspective.

Got it, thanks guys.

Thanks, Tom.

There are no further questions at this time. Mr. Rick McKenney, I turn the call back over to you for some final closing remarks.

Great. Thank you, Rob. I appreciate everybody sticking with us for a little bit more time today as we put together both the results of 2023 and our outlook for 2024. We'll be out there working at different conferences, talking to different investors. We look forward to meeting up with you here in the next several months. And I appreciate you spending the time on today's call. With that, we'll end the call, Rob. Thank you.

This concludes today's conference call. Thank you for your participation. You may now disconnect.